Chapter 6.2, Problem 2.3CYU

To determine

To find: The mean and standard deviation of total bonus of manager

Answer to Problem 2.3CYU

The mean and standard deviation are $760 and $509.09.

Explanation of Solution

Given:

  $\begin{array}{l}{\mu }_X=1.1,{\sigma }_X=0.943\\ {\mu }_Y=0.7,{\sigma }_Y=0.64\end{array}$

Manager receives bonus of $500 for each sold car and $300 for each car sold.

Calculation:

The mean and standard deviation of total bonus of manager can be calculated as:

  $\begin{array}{c}{\mu }_B=500\left(1.1\right)+300\left(0.7\right)\\ =760\\ {\sigma }_B=\sqrt{500{\left(0.943\right)}^2+300{\left(0.64\right)}^2}\\ =509.09\end{array}$

Thus, the mean and standard deviation are $760 and $509.09 respectively.